Annual Report 2012 - ecoWise Holdings Limited

ecoWise Holdings Limitedannual report 201239CORPORATE GOVERNANCEBased on the internal controls established and maintained by the Group, work performed by the internal and externalauditors and the documentation on the Group’s key risks referred to above, reviews performed by Management,AC and the Board, the AC and the Board are of the opinion that the Group’s internal controls, addressing financial,operational and compliance risks, were adequate as at 31 October 2012. This is in turn supported by assurancefrom the CEO, Deputy CEO and the CFO that:(a)the financial records of the Company have been properly maintained and the financial statements give a trueand fair view of the company’s operations and finances and are in accordance with the relevant accountingstandards; and(b)they have evaluated the effectiveness of the Company’s internal controls and have discussed with theCompany’s external and internal auditors of their reporting points and note that there have been no significantdeficiencies in the design or operation of internal controls which could adversely affect the Company’s abilityto record, process, summarise or report financial data.Principle 13: Internal AuditThe company should establish an internal audit function that is independent of the activities it audits.The Board recognizes its responsibilities for maintaining a system of internal control processes to safeguardshareholders’ investments and the Group’s assets and business.Currently, the Chairman of the AC enquires and relies on reports from Management, internal and external auditors onany material non-compliance and internal control weaknesses. The AC oversees and monitors the implementation ofany improvements thereto. The AC has reviewed with the internal and external auditors their findings of the existenceand adequacy of material accounting controls procedures as part of its audit for the financial year under review.The Group has established an internal audit function which is independent of the activities it audits. The Groupengages external independent audit firms to perform the internal audit function and they report directly to the ACwhich assists the Board in monitoring and managing risks and internal controls of the Group. The internal auditfunction primarily focusing on whether the current system of internal control provides reasonable assurance on:• compliance with applicable laws, regulations, policy and procedures;• reliability and integrity of information; and• safeguarding of assets.On an annual basis, the AC reviews the internal audit program of the Group so as to align it to the changing needsand risk profile of the Group’s activities.